- What is it?
Protects a business that is entrusted with the property of another, for direct physical loss or damage of property that happens during storage, cross-docking, packaging
- Who’s it for?
If you own a warehouse and store goods you may want to consider this insurance.
- What is offered?
Contact us for more information on the coverages offered with warehouse legal liability insurance!
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Warehouse Legal Liability Insurance in California
What is warehouse legal liability insurance?
Operating a warehouse comes with significant liability risk exposure, as the cost of replacing lost or damaged goods can be expensive. Warehouse legal liability insurance may help warehouses in California protect themselves from this risk.
Warehouse legal liability insurance may help protect warehouses if their stored goods are lost or damaged. The coverage is often combined with other protections in a broader warehouse policy.
What California businesses need warehouse insurance?
Any business that operates a warehouse in California may need warehouse insurance. Warehouses, distribution centers, commercial storage facilities and other businesses might want a policy.
Not insuring these businesses against the liability risks that come with storing goods leaves them dangerously exposed to risk. Warehouse policies tend to be the most suitable type of insurance for these businesses.
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What coverages does warehouse insurance provide?
Warehouse legal liability generally covers multiple incidents where a warehouse could be held financially responsible for injury or property damage/loss. Some examples of perils that a policy might cover are:
- Product damage caused by careless storage or handling
- Inventory damage caused by neglecting climate control system
- Destruction caused by not performing facility maintenance
- Goods damaged by fire
- Items stolen or vandalized
Warehouse legal liability isn’t always purchased separately, but instead is frequently combined with other coverages. A warehouse insurance policy might provide this protection along with general liability coverage, commercial property coverage and others.
Do warehouses need commercial auto coverage?
Warehouses that operate vehicles may want/need commercial auto coverage. The coverage is generally stipulated by law if a business operates vehicles on public roadways. Even if coverage isn’t legally required for vehicles that are only driven on a warehouse’s property, commercial auto is usually recommended.
Commercial auto coverage normally insures vehicles that can be driven on public roads. Warehouses may need other coverage for other equipment, such as forklifts. This sort of equipment is frequently protected by equipment-specific coverages.
An insurance agent who specializes in warehouse insurance can help warehouses make sure their trucks and equipment is all properly insured.
What’s the difference between warehouse legal liability and general liability coverage?
Warehouse legal liability and general liability both normally provide coverage in situations where a business could be sued for financial liability. The situations that these two coverages protect against are different, however.
General liability normally covers common “slip and fall” accidents that cause third-party injury. If a vendor, non-employee driver or customer is injured on a business’s property, any resulting injuries might fall under general liability’s domain.
Warehouse legal liability normally covers incidents where a warehouse is liable for damaged or lost goods. Should a customer’s goods that are stored in a warehouse be damaged, this coverage might cover the cost of compensating that customer.
How are lost goods valued by insurance companies?
Most warehouse legal liability policies value goods via either one of two ways.
Standard valuations typically place the value of goods at a set amount per pound. If goods are valued at $0.50 per pound, the compensation for 500 pounds of lost inventory would likely be $250.00.
Some valuations go by “landed cost,” which typically takes into account the cost of manufacturing, producing and storing goods. This is normally significantly higher than a standard per-pound valuation, and often is more accurate to the actual cost of loss.
Which of these two coverages warehouses should look for depends on what protection they offer customers. Most warehouses include either standard or landed cost protection within the terms of their contracts, and it’s generally wise to carry an insurance policy that matches how goods are valued in a warehouse’s contracts.
A knowledgeable insurance agent can help warehouses check which of these valuations insurance policies provide.
How can warehouses in California get warehouse legal liability insurance?
For help purchasing warehouse legal liability insurance, contact the independent insurance agents at Truck Writer Insurance Services. Our agents are well-versed in the coverage needs of logistics businesses, including warehouses, and we can help make sure your California facility is properly insured.